Goals
We carry out our corporate purpose, “We create chemistry for a sustainable future,” by pursuing ambitious goals along our entire value chain. In this way, we aim to achieve profitable growth and take on social and environmental responsibility, focusing on issues through which we as a company can make a significant contribution. We updated and revamped our goals to this effect in 2015.
Goal areas along the value chain
Growth and profitability
In 2011, we set ourselves sales and earnings goals for 2015 and 2020 as part of the “We create chemistry” strategy. In October 2014, we announced that we would not reach the financial goals for 2015, primarily because gross domestic product and industrial and chemical production had grown at a considerably slower average rate from 2010 to 2015 than our strategy had anticipated.
In September 2015, we reduced our expectations for the global economic environment from 2015 to 2020 (previous forecast in parentheses):
- Growth of gross domestic product: 3.0% (3.2%)
- Growth in industrial production: 3.5% (3.7%)
- Growth in chemical production: 3.9% (4.0%)
As a consequence, we no longer adhere to the financial goals previously stated for 2020.
Our aim for the years ahead is, on average, to grow sales slightly faster and EBITDA considerably faster than global chemical production, and to earn a significant premium on our cost of capital. Moreover, we strive for a high level of free cash flow each year, either raising or at least maintaining the dividend at the prior-year level.
Procurement
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2020 Goal |
Status |
More on |
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Assessment of sustainability performance of relevant suppliers1 according to our risk-based approach; development of action plans where improvement is necessary |
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70% |
31% |
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Employees
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2021 Goal |
Status at end of 2015 |
More on |
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Proportion of women in leadership positions with disciplinary responsibility |
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22–24% |
19.5% |
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Long-term goals |
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Proportion of international senior executives2 |
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Increase in proportion of non-German senior executives (baseline 2003: 30%) |
35.6% |
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Senior executives with international experience |
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Proportion of senior executives with international experience over 80% |
82.9% |
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Employee development |
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Systematic, global employee development as shared responsibility of employees and leaders based on relevant processes and tools |
The project has been implemented for around 60,000 employees worldwide. |
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Production
Product stewardship
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2020 Goal |
Status |
More on |
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Risk assessment of products sold by BASF worldwide in quantities of more than one metric ton per year |
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>99% |
67.8% |
Energy and climate protection
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2020 Goals |
Status |
More on |
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Covering our primary energy demand through the introduction of certified energy management systems (ISO 50001) at all relevant sites3 |
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90% |
39.5% |
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Reduction of greenhouse gas emissions per metric ton of sales product (excluding Oil & Gas, baseline 2002) |
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−40% |
−34.6% |
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Water
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2025 Goal |
Status |
More on |
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Introduction of sustainable water management at all production sites in water stress areas and at all Verbund sites (excluding Oil & Gas) |
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100% |
36.2% |
Products and solutions
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2020 Goal |
Status |
More on |
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Increase the proportion of sales generated by products that make a particular contribution to sustainable development (“Accelerators”) |
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28% |
26.6% |